Tranche Vault on Avalanche Drained of 1.01 Million USDC

The exploit is notable less for its size than for its method: minting inflated tranche shares via flash loan exploits the vault's accounting logic, not a bridge or key compromise, which puts structured-credit and tranche-based RWA vaults under scrutiny. Projects deploying similar share-pricing mechanisms on Avalanche and comparable chains face pressure to demonstrate that redemption logic holds under borrowed capital. Whether the incident prompts a broader review of tranche vault designs across RWA protocols is the open question; the drained contract's empty balance suggests recovery is unlikely without external intervention.